Gold Steadies As Billionaire Investor Paulson Holds Position, Soros Buys Miners ETF

Paulson & Co., the largest investor in the SPDR Gold Trust, the biggest exchange-traded product for the metal, held 10.23 million shares as of Sept. 30, unchanged from June 30, according to a government filing on Nov. 14. Billionaire George Soros took a stake in the Market Vectors Gold Miners ETF.

Global bullion demand tumbled 21% last quarter as investors pulled 118.7 metric tons out of ETFs and similar products, World Gold Council data show. Prices that fell into a bear market in April have rebounded 9.2% since reaching a 34-month low on June 28 as purchases of coins and jewelry rose. The metal is still headed for its first annual loss since 2000 as equities rallied and inflation failed to accelerate after Federal Reserve purchases of assets in the debt markets to enhance its policy of easy credit.

“The big sell off we saw earlier this year drove several investors away, and now some players are picking and choosing how they would like to invest in gold,” Peter Jankovskis, who helps oversee $3.5 billion as co-chief investment officer of Lisle, Ill.-based Oakbrook Investments. “The worst may be over, but the outlook remains bearish, and it's not a sought after sector.”

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